Website Home

Mortgage Rates Are Killing Home Affordability

This week's article is titled "Mortgage rates matter more than home prices". It talks about how, despite stagnant and/or falling home prices, home affordability is getting worse. The reason is mortgage rates.
An excerpt:

With home values still fading throughout most markets, November's ultra-low rates made U.S. housing more affordable than during any time in the last 20 years. Cheap homes, cheap mortgage rates--what more could you want? It was no wonder sales activity spiked into the fourth quarter of 2010. Like everything else on Wall Street, though, mortgage rates are unpredictable. By mid-November, the momentum that had driven rates to a 50-year low had reversed. Mortgage rates were quickly rising. Home affordability has since suffered.

The piece's message is that mortgage rates matter more to home buyers than home prices. Just a teensy rise in rates can wipe out whatever few thousand dollars you might win via negotiation. With mortgage rates rising (with little reason to fall), it's as good a time as any to buy that home you've been eying.

Lock Your Rate While Mortgage Rates Are Good
Mortgage rates are poised to rise. The economy is expanding, inflation is building, and bonds are losing. These are bad signs for the future of mortgage rates.
So, if you're in the process of buying a home, or wondering about a refinance, be aware time is not your friend. It's time to do something about it before your home affordability really craps out.
with some bullet points on your loan. I answer all my own emails and am happy to work with you. Or, click here to use my safe and secure online pre-qualification .

About the Author

Shawn Kaplan is an active, multi-state Licensed loan officer with Access National Mortgage.

Free Tips and Tricks? Sign up here

Join Our Market Newsletter

The Mortgage Gameplan

About Shawn and his Team

Trust • Communication • On Time15 Years of experience, over $400 Million in closed Real Estate Volume, and over 4,000 Happy Families later my Team and I have a mission...to offer a heightened sense of awareness and competence unparalleled in the mortgage industry while utilizing our resource teams, partnerships,and different roles and strengths.

We Do 3 Things:

Close on Time

Communicate Clearly and Consistently

Under-promise and Over deliver

We Do Business BY Referral

Our business model is different from our competition. We wont treat you like just another transaction. We strive to identify your goals and make it our goal to help you fulfill them. We invest in the relate ship. With that said our efforts and money are not sunk into “BLAST” marketing schemes to do huge volume but rather we invest our resources in you. We want to ensure that you have a smooth transaction with consistent communication. Then after we are done we continue to bring you added value by updating you on today’s market monthly, providing you with an annual mortgage review and inviting you to be a part of our client appreciation program, in hopes that you give my team and I the highest honor… Your testimony of faith in our abilities by telling your friends, family and co-workers to use us for the mortgage services.